Leases

3 Months Ended

Mar. 31, 2025

The Company’s operating lease arrangements are principally for office spaces in New York City. In August 2023, the Company entered into a sublease agreement as the sublessor for its office space in its former New York City headquarters (the “Sublease”). Sublease income is recognized as an offset to lease expense on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s condensed consolidated statement of operations. The sublease ends on December 31, 2029, the expiration date of the Company’s former New York City headquarter’s lease. In November 2023, the Company entered into a lease agreement, as the lessee, for the Company’s new corporate headquarters in New York City (the “Lease Agreement”) which commenced in January 2024 with a five year term and an option to extend the lease for an additional five years.

As of March 31, 2025, the Company had $18.8 million of operating lease right-of-use assets, $4.2 million and $16.9 million of current and non-current operating lease liabilities, respectively, and no finance leases on its condensed consolidated balance sheet. These operating lease arrangements, included in the measurement of lease liabilities, had a weighted-average remaining lease term of 4.6 years, a weighted-average discount rate of 6.1%, and do not reflect options to extend or terminate its leases, as management does not consider the exercise of these options to be reasonably certain. As of December 31, 2024, the Company had $19.7 million of operating lease right-of-use assets, $4.2 million and $18.0 million of current and non-current operating lease liabilities, respectively, and no finance leases on its consolidated balance sheet.

The Company paid $1.5 million and $1.1 million during the three months ended March 31, 2025 and 2024, respectively, for amounts included in the measurement of lease liabilities. The Company did not enter into any new lease arrangements during the three months ended March 31, 2025 and 2024.

The following table summarizes total lease expense, net for the periods presented:


	Three Months Ended March 31,
(in thousands)	2025		2024
Operating lease expense	$	1,226	$	1,151
Short-term lease expense	34		—
Variable lease expense	303		281
Total lease expense	1,563		1,432
Sublease income	(883)		(699)
Total lease expense, net	$	680	$	733

Operating lease expense is recognized on a straight-line basis over the term of the arrangement beginning on the lease commencement date for lease arrangements that have an initial term greater than 12 months and therefore are recorded on the balance sheet. Short-term lease expense is recognized on a straight-line basis over the lease term for lease arrangements that have an initial term of 12 months or less and therefore are not recorded on the balance sheet. Variable lease expense is recognized as incurred and consists primarily of real estate taxes, utilities, and other office space related expenses. As of March 31, 2025, the total remaining operating lease payments included in the measurement of lease liabilities, and undiscounted remaining cash receipts from the Company’s Sublease was as follows (in thousands):


Fiscal Year Ending December 31,	Operating Lease Payments		Sublease Cash Receipts
2025 (remaining)	$	(4,203)	$	2,585
2026	(5,263)		3,504
2027	(5,263)		3,574
2028	(5,263)		3,645
2029	(4,292)		3,718
Total (payments) cash receipts	$	(24,284)	$	17,026
Less: imputed interest	3,151
Total lease liabilities	$	(21,133)